My article on "How Food-tech can make money?" published in EntrepreneurIndia

Very nice article. I do tend to agree with you. Model 2 has most chance of success butthen focus will have to be on cost and innovation just like traditional business. However current focus is on tech and Customer acquisition. Another thing, this model also lacks the ability to sell more to the same customer. And there are many other hidden costs

Hi Hemendra, congrats for a nice analysis. Here are some comments : - "Food-Tech" is a short form for "Food Technology" ...which is a technological subject and has nothing to do with the cooking & delivery service models that are mushrooming. "Food-service" is probably a better terminology. - Food is primarily sensory-related and therefore, organo-leptics of the delivered meal is the most critical parameter for a business to succeed in this segment. In fact, organo-leptics take preference over nutrition & cost...even in cost & nutrition-conscious families !! Now, consistency in O-L parameters being the prime-mover, a model which can perform on taste-delivery 'meal after meal' is the one which can see the light of the next new year. Gross-margins will follow... - Your proposed model no. 2 is the only one which probably may be able to turn out consistency on this score 'cos of a centralisation of resources, i.e chefs & ingredients. - The other model could be to have a captive number of home-kitchens and each one belting out only one or 'unique' item...thereby controlling OL quality. But even in this model, the ingredients would have to be standardised which can happen only thru' a centralised procurement model. - But 'food-safety' is another critical consumer consideration and a centralised kitchen where the there is a clear 'control & command' structure in place would be the one to go for. Thanks.

Very interesting. It would be interesting to dwell on the skill sets for each model. I am reminded of my FMCG days. Model #2 is the typical manufacturer-marketeer model. Leading edge skills are needed in the manufacturing part and selling part. Solus or even core consumers will be difficult. Model no. 3 is the typical contract manufacturing- marketing model. An interesting twist here would be the equivalent of toll--manufacturing, ie, supply of RMs to the manufacturer. Supply chain & marketing skills become leading edge. Model no. 1 is an Uber of Food+Tech